Coronavirus Impacts on Tax and Accounting

Governments across the globe are proposing extensions, exemptions, incentives and other ways to ease the impact of the crisis.
Here’s what you need to know to advise your clients or business.

How Coronavirus Impacts Your Organization or Clients

Federal extensions, deferrals, and other incentives in play

The federal government is taking action on multiple fronts in response to the unprecedented impact of the coronavirus outbreak on individuals and businesses. The IRS has extended deadlines for filing and paying income taxes, and small and mid-size businesses can take advantage of new payroll tax credits. Taxpayers can expect additional tax and financial relief from the government in the form of direct cash payments, loans, debt forgiveness, loan guarantees, and/or other measures designed to alleviate the financial and economic fallout from the ongoing outbreak and to help re-start the nation’s economy as the outbreak subsides.

Decisions and guidance from the federal government are changing quickly. Read how to advise clients on how to handle the new deadlines, what to do if they can’t pay, and how companies can get a quick refund if needed.

State decisions still to come

States are deciding whether to push back filing and payment deadlines for corporate and individual income tax. We expect that businesses may be impacted with respect to nexus and apportionment as a result of their unexpected activities within different states – either through teleworking or otherwise. We expect businesses to be focused on the state rules for NOLs and depreciation. We have not yet seen any states provide additional relief via exemptions or tax credits, but it may be a matter of timing as legislatures and state governments are also moving toward remote working and limited operations.

Countries vary in responses

Countries are exploring various options to help individuals and businesses cope with the economic effects of the coronavirus. Many are implementing tax filing and payment extensions or deferrals. Some countries are enacting special exemptions and considering a variety of tax incentives to aid individuals and businesses in the short and long term. Governments are also considering what other policies may need to be considered to help countries recover and stimulate economic activity.

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Tax and the Coronavirus

The most recent federal, state and international news and developments in coronavirus-related tax news.

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Federal Tax & Accounting Coronavirus Roadmap

Track the latest developments in federal tax and accounting changes as a result of Covid-19 with our roadmap.

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State Tax Coronavirus Roadmap

Explore the state level tax implications of the virus for your organization or your clients with our exclusive Roadmap.

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International Tax Direct Tax Coronavirus Roadmap

Track the latest developments in international direct tax for both corporations and individuals with our Covid-19 roadmap.

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International Tax Indirect Tax Coronavirus Roadmap

As the Coronavirus impacts the tax landscape on a global scale, track the latest developments in international indirect tax with our roadmap.

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Receive timely alerts on new tax developments, including coronavirus policy decisions and legislation, as well as final and proposed regulations issued by Treasury related to TCJA.

 

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The CARES Act effectively allows businesses to claim 100% bonus depreciation on qualified improvement property placed in service after 2017.

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Virus for CFOs Is Recession, 9/11, and War All in One

Ash Noah, managing director at the Association of International Certified Professional Accountants and a former CFO, shares how CFOs should respond to the coronavirus.

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401(k) Plans During the Covid-19 Pandemic

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Coronavirus Challenges Facing Commercial Property Owners

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Asset Impairment Could Be Next Domino to Fall From Coronavirus Impact

One area of corporate financial reports that could see a material impact from the virus is long-term asset impairment. Here are some of the pressing questions companies should be asking.

 

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Bank Regulators Ease Accounting for Troubled Debt Modifications

Six banking regulators offered accounting relief to banks facing an onslaught of customer requests to extend loan terms or reduce interest rates due to the new coronavirus pandemic.

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U.S. Audit Board Pauses Inspections Amid Pandemic

“This opportunity for a pause will give audit firms the time, resources, and flexibility to work through significant matters with their issuer and broker-dealer clients,” the board said in a statement.

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Coronavirus Triggers SEC Disclosure Obligations

Adele Hogan, partner at Nelson Mullins says the known and unknown impact of coronavirus on earnings, supply chains, customers and other stakeholders, as well as other business matters, is likely to be material for some companies and require disclosure.

 

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Bloomberg Tax brings you the most recent developments in coronavirus-related tax news and analysis. Stay one step ahead with expert analysis, news, guidance, and practice tools available from Bloomberg Tax.

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